If Fixed Costs Are $500,000, the Unit Selling Price Is

question 222

Multiple Choice

If fixed costs are $500,000, the unit selling price is $55, and the unit variable costs are $30, what is the break-even sale units if fixed costs are increased by $80,000?

• A)10,545 units
• B)19,333 units
• C)23,200 units
• D)25,000 units

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Definitions:

Statistical Technique

A method used in the collection, analysis, interpretation, or presentation of data.

Continuously Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Simple Interest

Interest earned only on the original principal amount invested.

Annually Compounded Interest

Interest on a loan or investment that is calculated once a year, adding the interest to the principal sum and basing future interest calculations on this new principal.